CCA Sees Changes in 2015

CCA Industries, Inc. posted its fourth quarter and full year results for the period ended Nov. 30, 2015.  Q4 sales fell 3% to $4.1 million while annual sales also slipped 3% to $24.8 million. But its new CEO is hopeful.
 
“Fiscal 2015 was a transformative year for CCA.  We have made substantial progress in restructuring CCA, which has caused temporary pain, but should lead to a healthier Company, and profitable fiscal 2016,” said Lance Funston, chief executive officer of CCA Industries, Inc. “ We eliminated unprofitable products in fiscal 2015 that resulted in decreased sales; however remaining products have improved margins.  Our work force was reduced from 37 to 20 personnel during fiscal 2015.  The East Rutherford facility was sub-let for the remainder of the lease which further reduced overhead expenses.  
 
“The company had one-time exit costs of $1.3 million as a result of leaving the East Rutherford facility.  I believe the reduction from 81,000 sq. ft. to the current facility of 7,000 sq. ft. will prove more efficient in 2016.  The reduction in staff should permit further reductions in office requirements in 2016.”
 
Funston added, “We have positioned the company's overhead structure to enable it to return to profitability in 2016, even with reduced topline revenue. It's certainly too early to uncork the champagne, but management is encouraged by the unaudited preliminary results we have seen thus far in the first quarter of fiscal 2016.”